DMO To Raise N1.2trn Via FGN Bonds In Q1, 2023

The Debt Management Office, DMO, yesterday announced plans to raise up to N1.2 trillion through FGN bonds in the first quarter of the year 2023.

The DMO disclosed this in its FGN Bonds issuance calendar for Q1 2023.

Among other things, the calendar shows that the DMO will sell between N320 billion and N400 billion worth of FGN bonds in each of the three months in Q1 of 2023.

The FGN bonds come in four different maturities and interest rates namely 13.98% FGN FEB 2028, 12.50% FGN APR 2032, and 16.2499% FGN APR 2037.

The DMO also disclosed that the FGN Bond auctions will be held on January 30th, February 13th and March 20th, 2023.

The N1.2 trillion to be raised via FGN Bonds in Q1’23 represents 13.6 per cent of the N8.8 trillion 2023 budget deficit.

According to the Minister of Finance, Budget & National Planning, Mrs. Zainab Ahmed, 80 per cent or N7.04 trillion of the budget deficit is to be raised from domestic sources, while N1.76 trillion will be raised from foreign sources while N206.18 billion will come from proceeds of privatisation.

Last year, the DMO raised N3.06 trillion through FGN Bonds as part of efforts to finance the 2022 budget deficit of N7.35 trillion.

The N3.06 trillion raised represented a 13 per cent increase when compared with the N2.71 trillion raised in 2021.

Analysis of the monthly auction results showed that DMO offered N2.48 trillion worth of FGN Bonds while it sold N3.06 trillion, which is over 23 per cent oversubscription.